BVIC Group signs EUR 80m sale-and-leaseback deal

Athens-listed construction company and developer BVIC Group said it had signed an EUR 80 mln sale-and-leaseback deal with Emporiki Leasing and ATE Leasing. The 20-year agreement covers all of the lettable area, and common area, as well as the parking spaces of the development under construction at 340 Syggrou Avenue, in Athens. This includes 4,587 m² of office space, 9,185 m² of retail space and 2,133 m² of storage space, as well as 400 parking spaces

BVIC said it has already signed a lease agreement with Media Markt for 81% of the retail space and 86% of the storage space. The total annual rental revenue for the space that has already been leased is EUR 2,3 mln for the first year. The remaining retail space is under negotiation and is expected to be let before the development is completed in July 2008. The completion of 340 Syggrou Avenue is expected to contribute around EUR 1.60 per share to the firm's net asset value, to be booked in the third quarter of 2008, BIVC said.